Nishica Impex Private Limited Vs DCIT (ITAT, Mumbai Bench)
What The CIT(A) Has Decided, PCIT Cannot Revise—Explanation 1(c) To Section 263 Closes The Revisionary Door
Summary: The Mumbai ITAT has held that once an issue arising from an assessment order has been considered & decided by the first appellate authority, the PCIT has no jurisdiction to revise the assessment order on that very issue. In view of the express restriction contained in Explanation 1(c) to section 263(1), revisionary jurisdiction extends only to matters that have not been considered & decided in appeal. The order passed u/s 263 was therefore quashed as invalid & without jurisdiction.
Facts of the case
The assessee, Nishica Impex Private Limited, filed its return of income for AY 2018-19 on 25.12.2018 declaring a total income of ₹16,39,030.
The return was selected for scrutiny & the original assessment was completed u/s 143(3) on 19.04.2021, determining the total income at ₹18,75,270.
Subsequently, information became available on the Income-tax Department’s INSIGHT portal that the CGST authorities had reported M/s Advance Computers and Mobiles Pvt. Ltd. to be engaged in issuing fake or bogus invoices for passing fraudulent input tax credit without actually supplying goods.
The AO noticed that the assessee had entered into transactions with the said party for an amount of ₹88,58,844. Based upon this information, the assessment was reopened u/s 147. :contentReference[oaicite:2]{index=2}
